Reviewing Seritage Growth Properties (NYSE:SRG) & W.P. Carey (NYSE:WPC)

Seritage Growth Properties (NYSE:SRG) and W.P. Carey (NYSE:WPC) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Seritage Growth Properties and W.P. Carey”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$18.20 million	5.09	-$68.21 million	($1.04)	-1.58
W.P. Carey	$1.79 billion	7.95	$466.36 million	$2.93	21.35

W.P. Carey has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Seritage Growth Properties and W.P. Carey, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
W.P. Carey	0	7	9	0	2.56

W.P. Carey has a consensus price target of $77.36, suggesting a potential upside of 23.69%. Given W.P. Carey’s stronger consensus rating and higher probable upside, analysts plainly believe W.P. Carey is more favorable than Seritage Growth Properties.

Insider & Institutional Ownership

78.9% of Seritage Growth Properties shares are owned by institutional investors. Comparatively, 73.7% of W.P. Carey shares are owned by institutional investors. 0.2% of Seritage Growth Properties shares are owned by company insiders. Comparatively, 1.0% of W.P. Carey shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Seritage Growth Properties and W.P. Carey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-419.02%	-17.06%	-12.94%
W.P. Carey	36.34%	7.81%	3.58%

Risk & Volatility

Seritage Growth Properties has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500. Comparatively, W.P. Carey has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Summary

W.P. Carey beats Seritage Growth Properties on 12 of the 14 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.

About W.P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.